Abstract
Modern digital systems in the EEU do not meet the requirements for official methods of transferring funds, and are not appropriate for use in the field of corporate finance. As such, we propose the development of a modified digital system combining the principles and capabilities of traditional and innovative systems based on distributed registry technology.This should promote integration of national payment systems into the financial sphere under conditions of sanction burden, and low trust in the virtual world.First, we outline the features of corporate cash flows through digital financial assets transfer in a national digital system, and cross-border settlements within a common digital payment space. Next, we describe the possible roles of corporate structures and individuals in payment systems within an EEU common digital payment space. We combine methods of formal logic, historical and comparative analysis, modeling, and graphical interpretation. The study of the digital financial space was carried out on a selection of materials from the Russian Federation, Armenia, Belarus, Kazakhstan, and the Kyrgyz Republic.Our results illustrate the practical value of a new digital system in reducing the influence of intermediaries, and of integrating systems with different types of information into a common database. In addition, we indicate how the prevailing international digital transfer system will accelerate, simplify and reduce the cost of cash flow procedures for organisations.By leveling the need for an international digital unit, such a system will play an intermediary role. We identify the necessary conversion operations to achieve this.The scientific novelty of this study resides in the fact that there is no current analogue for the project proposed herein. As such, we present a large scale and straightforward roadmap for an ambitious and adaptive response to digital development opportunities, social evolution, and financial obstacles.
Highlights
IntroductionSociety is highly dependent on information financial systems. Their regular failures result in losses of funds, reputational damage, instability in financial flows, decline of trust to organisations and national payment systems, and interstate conflicts
Nowadays, society is highly dependent on information financial systems
Customer 1 (C1) creates a smart contract (SC) in the national distributed register assigning unique requisites and sends it to the Financial Organisation (FO1) which services it for sending to Customer 2 (C2). 2
Summary
Society is highly dependent on information financial systems. Their regular failures result in losses of funds, reputational damage, instability in financial flows, decline of trust to organisations and national payment systems, and interstate conflicts. In the international digital system only utility functions are available for them (e.g. identification and authorisation using a public and private key; adding and changing the rules and terms of DFA settlements; request of information from the national digital system in order to register accounts). Accounts of users of the national digital system, which provides access to the e-wallet, are registered by financial organisations if there is validated information in the individuals and legal entities registers. Its functions will comprise aggregation of accounts of financial organisations involved in international settlements and the relevant access control Depending on their role, users may be assigned different rights. The innovative technology of digital systems provides an opportunity to enter into smart contracts These allow for the automation of settlement operations and fulfillment of contracts, including those concluded with legal entities and governmental organisations [21]. The EAEU IB takes an indirect part in settlement operations, maintaining the operation of the digital system, establishing rules of its use, providing access to exchange rates in the system, performing control and regulation, and undertaking anti-money laundering and anti-terrorist financing procedures (Figure 4)
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